Processing Your Client’s Tax Returns, Paper and Electronic

BETTER SERVICE
2003 IRS Nationwide Tax Forum
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Processing Your Client’s Individual Tax Returns, Paper and Electronic
ELECTRONIC FILING • Goal > 80% by 2007 • Social Security Administration (i.e. name, number, date of birth) • Direct computer input to facilitate quicker processing • Lower error rate
2003 IRS Nationwide Tax Forum
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Processing Your Client’s Individual Tax Returns, Paper and Electronic

THE 1040 PAPER PIPELINE

2003 IRS Nationwide Tax Forum
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Processing Your Client’s Individual Tax Returns, Paper and Electronic
SUBMISSION PROCESSING • Open and sort mail • Control and prepare documents • Computer input • Resolve errors

2003 IRS Nationwide Tax Forum
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Processing Your Client’s Individual Tax Returns, Paper and Electronic
MOST COMMON ERRORS •Mismatch SSN/Name (including dependents) •Dependent on another return •Earned Income Credit •Child and Additional Child Tax Credit •Signature
2003 IRS Nationwide Tax Forum
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Processing Your Client’s Individual Tax Returns, Paper and Electronic
E-FILE 1040 PIPELINE Shorter than the Paper Pipeline

2003 IRS Nationwide Tax Forum
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Processing Your Client’s Individual Tax Returns, Paper and Electronic
ELECTRONIC FILING • E-File is the preferred method • Proof of acceptance • Faster refunds • Accurate
2003 IRS Nationwide Tax Forum
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Processing Your Client’s Individual Tax Returns, Paper and Electronic
Returns Processed • 80 Million Paper Returns
• 56 Million V Coded Returns

Error Rates 22 % of total filed

• 52.8 Million Electronic Returns < 1% • IRS Internal Processing 16.2% • Tax Practitioner Prepared 3.3%
Approximate Volumes

2003 IRS Nationwide Tax Forum
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What Can You Do To Help When Preparing the Return?
• Ensure the return is signed. • Have all schedules and forms in the correct order. • Verify all SSN/EIN are correct. • Verify eligibility and compute correct Earned Income Tax Credit
2003 IRS Nationwide Tax Forum
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What You Can Do To Help When Mailing The Return?
• Only one tax return per envelope • If no pre-printed labels are available – research the IRS web (www.IRS.gov) site or use Package X or Publication 17 • File in the correct location
2003 IRS Nationwide Tax Forum
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FILING AND PAYING IN THE CORRECT LOCATIONS
• New realignment of the states • New addresses • Form 1040-V separate mail-out with IRS Tax Forms • Encourage the use of IRS Tax Forms
2003 IRS Nationwide Tax Forum
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What You Can Do To Help When Mailing Payments?
• Use the pre-printed vouchers. • Use a separate check for each transaction. • Make checks and money orders payable to “United States Treasury”. • Include SSN/EIN, tax period, and form type on check.
2003 IRS Nationwide Tax Forum
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Processing Your Client’s Tax Returns, Paper and Electronic BETTER SERVICE
2003 IRS Nationwide Tax Forum
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